NAV and Investment Update

Sequoia Economic Infra Inc Fd Ld

17 April 2026

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES

Sequoia Economic Infrastructure Income Fund Limited ("SEQI" or the "Company")

MONTHLY FACTSHEET & COMMENTARY - March 2026

The NAV per share for SEQI, the largest LSE listed infrastructure debt fund, decreased to 93.17 pence per share from the prior month's NAV per share of 93.65 pence, representing a decrease of 0.48 pence per share.

	pence per share
28 February 2026 NAV	93.65
Interest income, net of expenses	0.61
Asset valuations, net of FX movements	-1.16
Share buybacks	0.07
31 March 2026 NAV	93.17

The decline in asset valuations is primarily attributable to unrealised mark-to-market impacts from higher interest rates, rather than underlying credit performance. The portfolio's pull to par increased from 3.5 pence per share during February to 4.5 pence per share during March.

No expected material FX gains or losses are reflected in the NAV as the portfolio is approximately 100% currency-hedged. However, the Company's NAV may include short-term unrealised FX gains or losses, arising from differences in the valuation methodologies between FX hedges and the underlying investments. These FX-related fluctuations will typically reverse over time.

Key Performance Highlights - March 2026

Dividend yield of 8.98%, based on the closing share price of 76.60 pence as at 31 March and the annual dividend target of 6.875 pence per share (share price as at 16 April 80.9p).

Weighted average portfolio yield-to-maturity was 9.62% as at 31 March, reflecting the portfolio's strong income returns.

The portfolio pull-to-par[1] (which is incremental to NAV as loans mature over time) was 4.5 pence per share as at 31 March.

The NAV total return was 8.37% for the financial year ended 31 March 2026.

Market Summary - March 2026

Relevant Interest Rate Announcements and Inflation Outlook

·	Sovereign bond markets were volatile during March, reflecting heightened Middle East tensions and a broader fixed income sell-off. Yields rose across key regions, with U.S. 10-year Treasuries at 4.3%, U.K. 10-year swap rates at 4.9%, and German Bund yields increasing to 3.0% from 2.6%, contributing to negative valuation movements, particularly for fixed-rate assets.
·	Central banks in the U.S., U.K., and Eurozone have broadly held policy rates steady. While underlying inflation has moderated, geopolitical developments, particularly in energy markets, have added upward pressure to inflation expectations and complicated the outlook for monetary easing.
·	Markets remain highly sensitive to developments in the Middle East. A temporary U.S., Iran ceasefire in early April briefly eased oil prices and bond yields, but subsequent escalation has contributed to ongoing volatility.
·	As a result, the timing and pace of rate cuts remain uncertain, with geopolitical risks likely to delay easing despite improving inflation trends in some regions.
·	In this environment, SEQI benefits from its dynamic interest rate positioning, with 58.5% of the portfolio in fixed-rate investments as at end March 2026.
·	The outlook for inflation, interest rates and financial markets remains closely linked to geopolitical developments, with prolonged instability likely to keep yields elevated, while de-escalation would support lower yields and improved market stability.

Tariff Impact & Geopolitical Analysis

·	Ongoing U.S., Iran hostilities, including proposed U.S. tariffs on countries trading with Iran, have increased geopolitical uncertainty and driven volatility in energy markets, reinforcing inflation risks.
·	The direct impact on SEQI's portfolio remains limited, with low short-term sensitivity to energy prices. The Investment Adviser continues however to assess potential downstream impact on borrowers, and Seqi benefits from 63.5% of the portfolio being comprised of senior loans as at March 2026, reflecting the Company's defensive positioning.
·	Market dislocation and potential credit spread widening may create opportunities for new lending at attractive risk-adjusted returns, subject to geopolitical developments.

Portfolio Update - March 2026

Revolving Credit Facility and Cash Holdings

·	As of March, the Company was net undrawn on its £300 million revolving credit facility and held cash of £48.5 million (inclusive of interest income). The Company also had net undrawn investment commitments of £80.2 million, with new investments and drawdowns scheduled in the near-term.

Portfolio Composition

·	The Company's invested portfolio consisted of 48 private debt investments and 2 infrastructure bonds, diversified across 8 sectors and 27 sub-sectors.
·	The weighted average loan life was 3.4 years.
·	Private debt investments which allow the Company to capture illiquidity yield premiums, represented 94.1% of the total portfolio.
·	The Company's portfolio remained geographically diversified, with 43.4% of investments located in the U.S, 22.9% in the UK and 33.7% in Europe.

Diversified Portfolio

Portfolio by Sector

Share Buybacks - March 2026

·	The Company bought back 7,748,174 of its ordinary shares at an average purchase price of 80.23 pence per share during March 2026.
·	The Company first started buying back shares in July 2022 and since then has spent £232.3 million buying back 288,507,083 ordinary shares by the end of March 2026, representing approximately 19% of the shares in issue as at month-end.
·	This share buyback programme by the Company continues to contribute positively to NAV accretion, generating 2.49 pence per share since the start of the programme in July 2022.
·	The Board applies a dynamic approach to share buybacks which takes into account available portfolio liquidity, the relative discount to NAV and other relevant factors. The share buyback programme will continue to remain in place.

New Investment Activity - March 2026[2]

·	A bridge facility extension and upsize of a loan to Grange Backup Power Ltd Facility B, a leading UK provider of infrastructure power standby generation. As part of the transaction, SEQI rolled its existing exposure into the new loan, with a total commitment of €75 million, of which €60.4 million had settled as at the March month-end. The yield to maturity on this loan is 9.09%.
·	Additional purchase of Navigator 7.25% - 10/2029 bonds for $14.4 million. Navigator Holdings Ltd is a US-based owner and operator of liquefied gas carriers. The business is globally diversified and has limited exposure to the Strait of Hormuz. The company's performance remains in line with expectations, and the bond is currently marked above par. The yield to maturity on this bond is 7.07%.
·	Additional senior loan for £6.9 million to Community Fibre, a U.K.-based full-fibre-to-the-premises (FTTP) broadband provider. The yield-to-maturity on this loan is 8.01%.
·	Additional senior loan for €5.1 million to Project Crystal, a leading provider of diagnostic imaging and radiotherapy services through an extensive network of clinics across Germany. The yield-to-maturity is approximately 6.65%.
·	A top-up of €1.5 million to the existing senior loan to Muehlhan Holding GmbH. The borrower is an established global industrial services provider with operations across the renewables, infrastructure, marine, industrial and construction sectors. The loan has a yield-to-maturity of 7.32%.
·	An additional senior secured loan of €0.6 million to finance the construction of a portfolio of ready-to-build Solar P.V. plants in Poland. The loan is projected to deliver a yield-to-maturity of approximately 8.74%.

Investments that Repaid During March 2026

·

Non-cash repayment of the original Grange Backup Power Ltd loan, associated with its extension and upsize as disclosed in the new investment activity section. The repayment is accounted for as a full rollover on the loan book.

·

Proceeds of $17.9 million were received from the sale of an equity position in Salt Creek EPIC, representing a minority stake in a separate asset to Salt Creek Aggregator Holdco LLC. The position has now been substantially settled, with approximately $210k withheld for tax provisions.  SEQI has three remaining Salt Creek positions (aggregated within the Top 10 Borrowers by Exposure table) totalling £55.8 million. The borrower continues to perform ahead of budget.

Non-performing Loans - March 2026

·	The Company continues to work towards maximising recovery from the remaining non-performing loans in the portfolio (amounting to 0.3% of NAV).
·	Shortly after month end, the Company sold its entire position in SL 4000 Connecticut LLC at a small premium to book value.

Top Holdings - March 2026

Valuations are independently reviewed each month by PwC.

http://www.rns-pdf.londonstockexchange.com/rns/8228A_1-2026-4-16.pdf

http://www.rns-pdf.londonstockexchange.com/rns/8228A_2-2026-4-16.pdf

About Sequoia Economic Infrastructure Income Fund Limited

·	SEQI is the U.K.'s largest listed debt investor, investing in economic infrastructure private loans and bonds across a range of industries in stable, low-risk jurisdictions, creating equity-like returns with the protections of debt.
·	SEQI's loans are high quality and have robust covenants. SEQI lends to companies that have a track record of consistent cash flow generation and which are backed by physical assets. This enables SEQI to benefit from exposure to an asset class with robust fundamentals as well as the opportunity for attractive returns.
·	It seeks to provide investors with regular, sustained, long-term income with opportunity for NAV upside from its well diversified portfolio. Investments are typically non-cyclical, in industries that provide essential public services or in evolving sectors such as energy transition, digitalisation or healthcare.
·	Since its launch in 2015, SEQI has provided investors with eleven years of quarterly income, consistently meeting its annual dividend per share target, which has grown from five pence in 2015 to 6.875 pence per share.
·	The fund has a comprehensive sustainability framework, combining sustainability goals, a proprietary ESG scoring methodology, alongside processes and metrics with alignment to key global initiatives.
·	SEQI is advised by SIMCo, a long-standing investment advisory team with extensive infrastructure debt origination, analysis, structuring and execution experience.
·	SEQI's monthly updates are available here: seqi.fund/investors/monthly-updates

For further information please contact:

Investment Adviser  Sequoia Investment Management Company Limited Steve Cook Dolf Kohnhorst Randall Sandstrom Anurag Gupta Matt Dimond	[phone] [e-mail]
Joint Corporate Brokers and Financial Advisers Jefferies International Limited Gaudi Le Roux Harry Randall	[phone]
J.P. Morgan Cazenove Rupert Budge William Simmonds	[phone]
Public Relations Teneo (Financial PR) Rob Yates Jessica Pine	[phone] [e-mail]
Alternative Investment Fund Manager (AIFM) FundRock Management Company (Guernsey) Limited Ben Snook Chris Hickling	[phone] [e-mail]
Administrator / Company Secretary Apex Fund and Corporate Services (Guernsey) Limited Aoife Bennett	[phone] [e-mail]

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America. This announcement is not an offer of securities for sale into the United States.  The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration.  No public offering of securities is being made in the United States.

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[1] The pull-to-par includes the mark-to-market of the Fund's interest rate swaps, capturing the valuation impact of hedging floating rate assets into fixed rate exposure.

[2] For non-Sterling assets hedged into Sterling, prevailing interest rate differentials may provide a positive uplift to the Sterling-equivalent yield.

 

END